Just around seven years ago, Congress implemented a new act which was meant to have the pleases of whistleblowers heard and their rights protected. Whistleblowers are doing a service for many people, especially consumers when they inform SEC of financial irregularities or blatant financial fraud, and their rights should be protected despite sharing this information. Information like this should always be given to the Securities and Exchange Commission to be examined further.
Before the changes on Wall Street and the Dodd-Frank Reform Act, it was all too common that whistleblowers lives were effected negatively for coming out with their information. In extreme circumstances, whistleblowers lives have been put in danger just because of the information that they released. Another problem in the past was that whistleblowers who came forward didn’t have any incentive to do so given the negative consequences that were often involved. Despite exposing a fraudulent company and reclaiming ill-gotten funds, whistleblowers were not compensated justly for their actions, despite leading to a proper and winning case.
With the relatively new SEC Whistleblower Program, individuals are better compensated for their actions should they end up in a real case, especially a winning case. Whistleblowers are set to earn anywhere from ten to thirty percent of the sanctions that are awarded for a winning case against guilty parties. The SEC Whistleblower advocate will be able to get their maximum cut from SEC attorneys, which are bound by the Securities and Exchange Commission and have extensive legal training relating to SEC and whistleblowers. According to the new Act, it is illegal for any employee to harass a whistleblower anywhere within or outside the bounds of their employment. It is up to whistleblowers to take the step and make the report to keep the rules of law in check.
Labaton Sucharow has been working with Whistleblowers for decades since the firm was first started back in the 1960s. This law firm was specifically started up to deal with these whistleblower SEC cases that were problematic at the time. Most whistleblowers were afraid to come out due to fear and many today are unaware that they have people in their corner to help them in their battle against fraudulent companies.